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Making the most of Risk and Control Self-Assessment (RCSA) programs

Learn how a centralized model can help banks strengthen the benefits of RCSA transformation.

Overview

Banks undertaking Risk and Control Self -Assessment (RCSA) transformation initiatives can benefit from a centralized approach to address risk challenges.

Emerging risks related to digital technologies put added pressure on line managers in terms of risk management, while new regulatory demands have increased costs for risk and control functions.

An RCSA program with functions centralized in a Center of Excellence (COE) model can help address these challenges while supporting the organization’s strategic objectives. Continuous RCSA initiatives can be scheduled throughout the year to reduce disruptions and the COE framework can concentrate the experience and specialization needed to manage such risks.

The insights and standardized reporting from the COE can help improve the organization’s ability to make risk-weighted decisions and to set priorities while helping to reduce operational losses. Issues can be identified and remediated sooner and a risk mind set can be fostered throughout the organization.

The COE model helps the enterprise identify emerging or systemic risks and to share insights and new controls across lines of business.

Key Findings

New challenges facing financial institutions call for improvements to RCSA processes. These include:

Reinforcement of risk “first line of defense” control responsibility. Line managers are now charged with identifying, owning and managing risks and with implementing corrective actions.

Emerging risks tied to changes in operating models. Organizations are experimenting with and adopting new digital operating models with their own set of risks.

Operational risk costs. New regulatory demands have led to higher costs for risk, controls and compliance staff.

Need for profitable growth. Institutions searching for new avenues to profitable growth are finding it difficult to identify and measure the true costs of operational risk.

In light of these and other challenges, financial institutions are looking for better ways to manage operational risk and help reduce unexpected losses.

Over two-thirds of firms surveyed in a recent compliance study1 said they are expecting skilled staff to cost more.

Fred works with global and large regional banks to transform their risk management and lending capabilities. His extensive experience in credit risk, operational risk, and regulatory compliance helps executives and their firms become high-performance businesses.

Jon works with major financial services institutions to develop risk-based strategies, controls and risk mitigation programs to manage high impact and emerging risks
and issues. He specializes in risk identification, assessment, measurement, and reporting.

John Watkins
Manager, Accenture Finance & Risk Services

John specializes in operational risk management and regulatory compliance. He works with financial services institutions to help them navigate their risk and compliance challenges.

Victoria Shan
Consultant, Accenture Finance & Risk Services

Victoria brings her experience and skills in operational risk management and credit risk management to help financial institutions define and implement their operational and credit risk programs.

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